Grace Announces New BioFuel Technologies Group

2 October 2006

Grace Davison, an operating segment of WR Grace and a global supplier of catalysts and chemicals, has established a BioFuel Technologies Group that will oversee intensified product development in the renewable fuels industry.

The first areas the BioFuel Technologies Group will focus on include catalysts and adsorbents for enhanced biodiesel and bioethanol production, as well as chromatography-based analytical and quality control tools.

Right now ethanol looks good to producers because it is more expensive than other fuels (note to E85 fans: E85 may be cheaper by the gallon, but by the BTU or kWh it is still more expensive than gasoline).

Eventually, ethanol will have to compete with other fuels as just another fuel. As the E85 experience suggests, there are few consumers out there willing to fork over more money just for the privilege of burning ethanol. Add to that the fact that ethanol cannot be transported in existing pipelines, its tendency to absorb moisture, and I would suggest that ethanol is going to fade away quietly. Consumer Reports seems to agree...

Sometimes the superior product does not win out in the market, but rather the most popular product that gains the most market share. Carter asked ADM in the 70s if they could produce enough ethanol, they said sure. With almost 30 years head start, other fuels have some catching up to do.